Kootenai Health

2022-002 Department of Homeland Security and the State of Idaho Department of Health & Welfare Federal Financial Assistance Listing #97.036 Disaster Grants - Public Assistance (Presidentially Declared Disasters) Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #820523354, #820231746, #820497771, and #820226453 Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The District does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. The Schedule did not include the Disaster Grant ? Public Assistance (Presidentially Declared Disasters) and PRF for one of the blended component units. Cause: Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required with the District meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the District would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the District?s schedule of expenditures of federal awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.

2021-002 Department of Health and Human Services Federal Assistance Listing/CFDA #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 1 TIN #820231746, #820497771, #820226453 and Period 2 TIN #820231746 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The District claimed expenses based on specifically identified COVID related expenses and COVID related incremental expenses. Condition: During our testing, there was review over individual eligible expenditures; however, there was no documented review over the expenditure spreadsheet used to calculate those expenditures claimed for the federal program outside of the preparer. Cause: The District did not have an adequate internal control policy in place to ensure review and approval over tracking of other funding sources was documented. Effect: The lack of adequate policies governing review increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context/Sampling: Detail testing was performed over eligible expenditures for activities allowed and unallowable and allowable cost/cost principles. A sample of 65 expenditures were tested which totaled $505,443 out of $23,127,630. The overall expense worksheet did not have evidence of review by someone other than the preparer (i.e., population of one). Repeat Finding from Prior Years: No Recommendation: We recommend that the District enhance internal control policies to ensure that formal documentation of reviews is present. Views of Responsible Officials: Management agrees with the finding.